* Caixa Econômica Federal said its net income for the second quarter rose 21.6% year over year to 4.2 billion Brazilian reais, while its first-half 2019 profit increased 22.2% to 8.1 billion reais. The bank booked a delinquency rate of 2.46% in the second quarter, considerably lower than the market average of 3.05%.
* S&P Global Ratings revised its banking industry country risk assessment on Argentina to group 9 from group 8 and the industry risk to 10 from 9, reflecting higher economic risks for banks due to the weakening of the sovereign's conditions. At the same time, the ratings of all Argentine banks with long-term ratings of B- were placed on CreditWatch with negative implications. The placement reflects the potential impact that the re-profiling of sovereign debt and reintroduced foreign exchange controls could have on banks and their ability to cover financial obligations.
MEXICO AND CENTRAL AMERICA
* Panama's Banco Aliado SA has completed its purchase of Banco Panamá SA after garnering approval from banking regulator SMV. Shareholders of Grupo Centenario, Banco Panamá's former parent company, will receive $210 million for the sale.
* Analysts surveyed by Mexico's central bank cut their 2019 economic growth forecast for the country to 0.5% from 0.79%, El Financiero reported. The also lowered their 2020 growth forecast to 1.39% from 1.47%.
* Family remittances to Mexico totaled about US$3.27 billion in July, up 14.4% from the same month a year ago and higher than US$3 billion for the third consecutive month, El Financiero reported, citing central bank data.
* Moody's maintained a stable outlook on Mexico's insurance industry, saying that the country's economic slowdown will not have a major impact on the sector, especially in the life and health segments, El Economista reported.
* Brazilian antitrust regulator Cade has approved Itaú Unibanco Holding SA's minority investment in Ticket Serviços SA, marking the completion of the deal. Itaú announced the strategic partnership deal to purchase an 11% stake in Ticket Serviços in September 2018.
* Brazil recorded a trade surplus of $3.28 billion in August, widening 20% from a $2.28 billion surplus a year ago, Reuters reported, citing government data. The country has accumulated a trade surplus of $31.76 billion so far in 2019, down 13.4% compared to the first eight months of 2018.
* The average 2019 inflation forecast in the Brazilian central bank's most recent FOCUS survey declined to 3.59% from 3.65% a week earlier, Reuters reported.
* The number of credit cards in Brazil grew by 16.2% at the end of 2018 compared to the close of the previous year, Valor Econômico reported, citing central bank data. Meanwhile, mobile phones and tablets were the most used channels for banking transactions in Brazil for the second consecutive year in 2018, the publication reported separately.
* Brazilian states transferred 16.1 billion reais to public companies in 2018 in the form of capital reinforcement and grants, but received only 2.2 billion reais in dividends, Reuters reported, citing data from the national Treasury.
* Argentine assets, including dollar and euro-denominated sovereign bonds, fell sharply Sept. 2 after the government reintroduced capital controls to help stem the local currency's decline. The American depositary receipts of Banco Macro SA and Grupo Financiero Galicia SA were also trading lower. Central bank chief Guido Sandleris said Argentina's financial system remains "solid" and that the central bank will stick to a tight monetary policy despite the currency controls, Reuters reported.
* Argentina's tax intake reached about 458.50 billion Argentine pesos in August, up 56.3% from a year earlier, Reuters reported, citing government data. The increase was due mainly to high inflation of about 55%.
* Economists say a new bank run in Argentina is unlikely for now despite the imposition of capital controls as the country's banking sector is more solid and liquid than it was in the previous 2001 crisis, Valor Econômico reported. However, the currency restrictions put the country in danger of losing its placement in MSCI's emerging markets index, El Cronista reported.
* Banks and employee unions in Argentina have reached an agreement to extend bank service hours for one week, El Cronista reported. However, the unions have also asked for an extraordinary bonus in light of high inflation in the country.
* Asia-Pacific: UK approves PSC Insurance deal; IFC names Singapore head
* Middle East & Africa: Emirates NBD hikes foreign ownership cap; Old Mutual plans share buybacks
* Europe: UK PM warns of snap elections; Lloyds, Tesco in £3.8B deal; Rabobank sells CoCos
Pablo Jimenez Arandia contributed to this article.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
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